 ***** OPEN OUTPUT LOG FILE  *****


log using "C:\Users\gk57526\Dropbox\TELs & Income Inequality (Michelle Lofton)\Data\Final Dataset\December 2024\OUTPUT\Income Inequality.APPENDIX C ANALYSES.12-10-2024.smcl", replace 






*** APPENDIX C: SENSITIVITY CHECK, 2: ADDRESSING POTENTIAL REVERSE CAUSALITY BY OMITTING POTENTIAL ENDOGENOUS FISCAL RULE CHANGES [I.E., STATES WITH CHANGING FISCAL RULES WITHIN THE SAMPLE PERIOD] *** 


*** SUB-SAMPLE CONTAINING ONLY STABLE/TIME-INVARIANT STATE PANEL FISCAL REGIMES [N = 37 STATES] *** 







*** Retrieve "Income Inequality Database.MANUSCRIPT ANALYSES.12-10-2024.dta" ***

use "C:\Users\gk57526\Dropbox\TELs & Income Inequality (Michelle Lofton)\Data\Final Dataset\December 2024\DATA\Income Inequality Database.MANUSCRIPT ANALYSES.12-10-2024.dta", replace



*** SET DATA TO PANEL STRUCTURE  ***


xtset fips year, yearly


  

***   OMIT 12 STATE PANELS WHERE A CHANGE IN FISCAL RULE STATUS OCCURS [NO TEL--> TEL; TEL--> NO TEL) ***




*** STATE PANELS WITH FISCAL RULE [TEL STATUS] CHANGE [N = 12] ***


* (1) CONNECTICUT [FIPS==9]:     ADOPTS A TEL IN 1991 *

* (2) FLORIDA [FIPS==12]:        ADOPTS A TEL IN 1994 *
 
* (3) ILLINOIS [FIPS==17]:       ADOPTS A TEL IN 2012 & RESCINDS A TEL IN 2016 *

* (4) INDIANA [FIPS==18]:        ADOPTS A TEL IN 2003 *
 
* (5) IOWA [FIPS==19]:           ADOPTS A TEL IN 1993 *
 
* (6) MAINE [FIPS==23]:          ADOPTS A TEL IN 2005 *
 
* (7) NEW JERSEY [FIPS==34]:     ADOPTS A TEL IN 1992 *

* (8) NORTH CAROLINA [FIPS==37]: ADOPTS A TEL IN 1991 *
 
* (9) OHIO [FIPS==39]:           ADOPTS A TEL IN 2006 *

*(10) RHODE ISLAND [FIPS==44]:   ADOPTS A TEL IN 1992 *
 
*(11) UTAH [FIPS==49]:           ADOPTS A TEL IN 1989 *
 
*(12) WISCONSIN [FIPS==55]:      ADOPTS A TEL IN 2001 & RESCINDS A TEL IN 2012 *
 
 
 

gen statepanel_TEL_change = 1 if fips==9 | fips==12 | fips==17 | fips==18 | fips==19 | fips==23 | fips==34 | fips==37 | fips==39 | fips==44 | fips==49 | fips==55
*
replace statepanel_TEL_change = 0 if statepanel_TEL_change==. 
*
tab statepanel_TEL_change 



 



***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 





*** 0.1 SUMMARY INCOME INEQUALITY OUTCOME MEASURES [ATKINSON & THEIL INEQUALITY INDICES WHICH ARE BOTH DECOMPOSABLE AND WEAK AND STRONG PRINCIPLE OF TRANSFERS] *** 

** DATA FROM MARK FRANK [SEE CODEBOOK FOR FORMAL DOCUMENTATION] ***



* Bivariate Correlations Among Outcome Variables (Within-State Differences) & Descriptive Statistics *

correlate  wAtkin05_pct  wTheil_pct  if statepanel_TEL_change!=1 
correlate  wAtkin05  wTheil  if statepanel_TEL_change!=1 
*
*
sum  wAtkin05_pct  wTheil_pct if statepanel_TEL_change!=1, detail
sum  wAtkin05  wTheil if statepanel_TEL_change!=1, detail

*
*



*** 0.2 AFFLUENT CITIZENS' INCOME-SHARE BASED INCOME INEQUALITY OUTCOME MEASURES [Top10_adj  Top1_adj]  *** 


* Bivariate Correlations Among Outcome Variables (Within-State Differences) & Descriptive Statistics *

correlate wTop10_adj  wTop1_adj   if statepanel_TEL_change!=1 
correlate wTop10_adj  wTop1_adj   if statepanel_TEL_change!=1 
*
*
sum  wTop10_adj  wTop1_adj  if statepanel_TEL_change!=1, detail
sum  wTop10_adj  wTop1_adj  if statepanel_TEL_change!=1, detail
*
*
*


*** 0.3 TABULAR BREAKDOWN OF TREATMENT VARIABLE [POLICYTREAT_2] WITH REDUCED SAMPLE MINUS 12 STATE PANELS OF OBSERVATIONS ***
*** POLICYTREAT2 = 0 (DIVIDED PARTISAN CONTROL); = 1 (UNIFIED DEMOCRATIC CONTROL); &  = 2 (UNIFIED REPUBLICAN CONTROL)  

tab policytreat_2 if statepanel_TEL_change!=1 
*
tab policytreat_2 if statepanel_TEL_change!=1 





*** 0.4 BREAKDOWNS AMONG TREATMENT VARIABLES BY EACH OF THE SIX CELLS [TREATMENT CONDITIONS] -- AND ALSO BY TELs and UNIFIED PARTISAN CONTROL OF STATE GOVENRMENTS *** 


* Tabulate with Percentages of Panel Observations for Various Treatment Variables (TEL indicator & UPC/DPC indicators) and Conditions (k*j = 2 * 3 = 6) *

tab policytreat_1 policytreat_2 if statepanel_TEL_change!=1, cell



** DECOMPOSING MAXIMUM REGIME DIIFFERENCES: UNIFIED REPUBLICAN PARTISAN CONTROL & TEL MINUS UNIFIED DEMOCRATIC CONTROL & NO TEL  **


* NOTE: OBTAIN STANDARD DEVIATION FOR W_TOP1_ADJ [BY COMMON SUBSAMPLE] *


sum wAtkin05_pct  wTheil_pct wTop10_adj  wTop1_adj  if statepanel_TEL_change!=1 & policytreat_2==2 & policytreat_1==0 |  policytreat_2==1 & policytreat_1==1




***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 





*** TABLES C1 -- C2  ---- POLICYTREAT_2 [ALTERNATIVE PARTISAN CONTROL OF GOVERNMENT CATEs: UNDER A FIXED TEL STATE & UNDER A FIXED NO TEL STATES, RESPECTIVELY]:  
***                                      DIVIDED PARTISAN CONTROL [POLICYTREAT_2==0]; UNIFIED DEMOCRATIC PARTISAN CONTROL [POLICYTREAT_2==1]; & UNIFIED REPUBLICAN PARTISAN CONTROL [POLICYTREAT_2==3]  -- 
***                                 







*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 


*** WITHIN-STATE VARIATION OF DEPENDENT VARIABLES UNDER EACH PARTISAN CONTROL REGIME [DPC / UDC / URC] ***

sum wAtkin05_pct  wTheil_pct wTop10_adj  wTop1_adj if policytreat_2==0 & statepanel_TEL_change!=1 , detail
*
sum wAtkin05_pct  wTheil_pct wTop10_adj  wTop1_adj if policytreat_2==1 & statepanel_TEL_change!=1, detail
*
sum wAtkin05_pct  wTheil_pct wTop10_adj  wTop1_adj if policytreat_2==2 & statepanel_TEL_change!=1, detail

*
*
*

*** WITHIN-STATE VARIATION OF DEPENDENT VARIABLES UNDER EACH FISCAL REGIME [NO TEL / TEL] ***
 
sum wAtkin05_pct  wTheil_pct wTop10_adj  wTop1_adj if policytreat_1==0 & statepanel_TEL_change!=1, detail
*
sum wAtkin05_pct  wTheil_pct wTop10_adj  wTop1_adj if policytreat_1==1 & statepanel_TEL_change!=1, detail
*
*
*
*



** DECOMPOSING MAXIMUM REGIME DIIFFERENCES: UNIFIED REPUBLICAN PARTISAN CONTROL & TEL MINUS UNIFIED DEMOCRATIC CONTROL & NO TEL  **

* NOTE: OBTAIN STANDARD DEVIATION FOR W_TOP1_ADJ [BY COMMON SUBSAMPLE] *


sum wAtkin05_pct  wTheil_pct wTop10_adj  wTop1_adj  if statepanel_TEL_change!=1 & policytreat_2==2 & policytreat_1==1 |  policytreat_2==1 & policytreat_1==0






***************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************
***************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************
*************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** 



*** TABLE C1 [ATKINSON AND THEIL INEQUALITY INDEX MEASURES]:     POLICYTREAT_ 1 * POLICYTREAT_2 [ALTERNATIVE COMBINATIONS OF FISCAL RULE & PARTISAN CONTROL OF GOVERNMENT CATEs]:  
***              UNIFIED DEMOCRATIC PARTISAN CONTROL/UNIFIED REPUBLICAN PARTISAN CONTROL/DIVIDED PARTISAN CONTROL & TEL/NO TEL COMBINATION SIX-CATEGORY INDICATOR 
***              [BASELINE INTERCEPT: DPC_NO TEL] -- SUMMARY INCOME INEQUALITY MEASURE: ATKINSON & THEIL INDEX  
  

***                     POLICYTREAT_1==0: [NO TEL]; POLICYTREAT_1==1 [TEL]  /////  POLICYTREAT_2==0: [DPC]; POLICYTREAT_2==1 [UDC]; POLICYTREAT_2==2 [URC]         ***

*





* ATKINSON INDEX MEASURE [MC1] -- BOTH CONTROL COVARIATES & STATE & YEAR FEs; [EXCLUDING STATE PANELS WITH CHANGING FISCAL RULES] *

regress Atkin05_pct  i.policytreat_1##i.policytreat_2  policy_updated_economic  rpcpi  ur  poverty_r  rdf_pc  C_IT  bbr_strong_rub   i.fips i.year if statepanel_TEL_change!=1,  vce (cluster fips) 
*
*
*
estat ic



* COMPUTE LINEAR COMBINATION REGRESSION COEFFICIENTS FOR UNIFIED DEMOCRATIC CONTROL: TEL & UNIFIED REPUBLICAN CONTROL: TEL * 



** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL [TOTAL EFFECT]: UDC | NO TEL + UDC | TEL *

lincom  1.policytreat_2  + 1.policytreat_1#1.policytreat_2 

*


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL [TOTAL EFFECT]: URC | NO TEL + URC | TEL *

lincom  2.policytreat_2  + 1.policytreat_1#2.policytreat_2 

*


****************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** 



*  STANDARDIZED TREATMENT EFFECTS ARE CALCULATED AS THE PERCENTAGE OF EACH RESPECTIVE OUTCOME VARIABLE'S WITHIN STANDARD DEVIATION PER MODE BETWEEN EACH PARTISAN CONTROL GROUP)*100" * 
 
* NOTE: STANDARD DEVIATION FOR W_ATKIN_PCT [BY COMMON SUBSAMPLE FOR POLICYTREAT_2: UDC/DPC/URC] *



** BETWEEN TEL -- NO TEL, WITHIN PARTISAN CONTROL REGIME STANDARDIZED TREATMENT EFFECTS [DECOMPOSING TEL REGIME EFFECTS]  **
*
*

** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *

lincom  ((1.policytreat_2  + 1.policytreat_1#1.policytreat_2   - 1.policytreat_2) / 2.863242)*100


** DIVIDED PARTISAN CONTROL | TEL - DIVIDED PARTISAN CONTROL | NO TEL *

lincom  (1.policytreat_1 / 3.047196)*100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL *

lincom  ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2  - 2.policytreat_2) /  2.43796)*100


*********************************************************************************************************************************************************************


** WITHIN NO TEL / TEL, BETWEEN PARTISAN CONTROL TREATMENT EFFECTS [DECOMPOSING PARTISAN REGIME EFFECTS] **

* NOTE: STANDARD DEVIATION FOR W_ATKIN_PCT [BY COMMON SUBSAMPLE FOR POLICY TREAT_1: NO TEL / TEL] *
*
*

** DIVIDED PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((1.policytreat_2) /  3.043072) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | NO TEL -  DIVIDED PARTISAN CONTROL | NO TEL *
lincom (2.policytreat_2 /  3.043072) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2 - 1.policytreat_2) /  3.043072) *100

*
*
*

** DIVIDED PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((1.policytreat_1  - 1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 2.850199) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | TEL -  DIVIDED PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2  -  1.policytreat_1) / 2.850199) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2   -  1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 2.850199) *100



*********************************************************************************************************************************************************************


** DECOMPOSING MAXIMUM REGIME DIIFFERENCES: UNIFIED REPUBLICAN PARTISAN CONTROL & TEL MINUS UNIFIED DEMOCRATIC CONTROL & NO TEL  **


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2 -  1.policytreat_2) /  2.712771) *100





***************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************
*************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** 
************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************




* THEIL INDEX MEASURE [MC2] -- BOTH STATE & YEAR FEs; ADD CONTROL COVARIATES [EXCLUDING STATE PANELS WITH CHANGING FISCAL RULES] *

regress Theil_pct  i.policytreat_1##i.policytreat_2  policy_updated_economic  rpcpi  ur  poverty_r  rdf_pc  C_IT  bbr_strong_rub   i.fips i.year if statepanel_TEL_change!=1,  vce (cluster fips)
*
*
*
estat ic



* COMPUTE LINEAR COMBINATION REGRESSION COEFFICIENTS FOR UNIFIED DEMOCRATIC CONTROL: TEL & UNIFIED REPUBLICAN CONTROL: TEL * 



** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL [TOTAL EFFECT]: UDC | NO TEL + UDC | TEL *

lincom  1.policytreat_2  + 1.policytreat_1#1.policytreat_2 

*


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL [TOTAL EFFECT]: URC | NO TEL + URC | TEL *

lincom  2.policytreat_2  + 1.policytreat_1#2.policytreat_2 

*


*****************************************************************************************************************************************************************************************************************
*****************************************************************************************************************************************************************************************************************



*  STANDARDIZED TREATMENT EFFECTS ARE CALCULATED AS THE PERCENTAGE OF EACH RESPECTIVE OUTCOME VARIABLE'S WITHIN STANDARD DEVIATION PER MODE BETWEEN EACH PARTISAN CONTROL GROUP)*100" * 
 
* NOTE: STANDARD DEVIATION FOR W_THEIL_PCT [BY COMMON SUBSAMPLE FOR POLICYTREAT_2: UDC/DPC/URC] *



** BETWEEN TEL -- NO TEL, WITHIN PARTISAN CONTROL REGIME STANDARDIZED TREATMENT EFFECTS [DECOMPOSING TEL REGIME EFFECTS]  **
*
*

** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *

lincom  ((1.policytreat_2  + 1.policytreat_1#1.policytreat_2  - 1.policytreat_2) / 12.51739)*100


** DIVIDED PARTISAN CONTROL | TEL - DIVIDED PARTISAN CONTROL | NO TEL *

lincom  (1.policytreat_1 /  13.58884)*100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL *

lincom  ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2   - 2.policytreat_2) /   11.98833)*100


*********************************************************************************************************************************************************************


** WITHIN NO TEL / TEL, BETWEEN PARTISAN CONTROL TREATMENT EFFECTS [DECOMPOSING PARTISAN REGIME EFFECTS] **

* NOTE: STANDARD DEVIATION FOR W_THEIL_PCT [BY COMMON SUBSAMPLE FOR POLICY TREAT_1: NO TEL / TEL] *
*
*

** DIVIDED PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom (1.policytreat_2 /  14.07027) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | NO TEL -  DIVIDED PARTISAN CONTROL | NO TEL *
lincom (2.policytreat_2 /  14.07027) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2 - 1.policytreat_2) /  14.07027) *100

*
*
*

** DIVIDED PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((1.policytreat_1  -  1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 12.65761) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | TEL -  DIVIDED PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2   -  1.policytreat_1) / 12.65761) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2  -  1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 12.65761) *100



*********************************************************************************************************************************************************************


** DECOMPOSING MAXIMUM REGIME DIIFFERENCES: UNIFIED REPUBLICAN PARTISAN CONTROL & TEL MINUS UNIFIED DEMOCRATIC CONTROL & NO TEL  **


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2 -  1.policytreat_2) /  11.86182) *100




************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************
************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************





*** TABLE C1 [TOP 10% & 1% INCOME SHARE MEASURES]:     POLICYTREAT_ 1 * POLICYTREAT_2 [ALTERNATIVE COMBINATIONS OF FISCAL RULE & PARTISAN CONTROL OF GOVERNMENT CATEs]:  
***              UNIFIED DEMOCRATIC PARTISAN CONTROL/UNIFIED REPUBLICAN PARTISAN CONTROL/DIVIDED PARTISAN CONTROL & TEL/NO TEL COMBINATION SIX-CATEGORY INDICATOR 
***             [BASELINE INTERCEPT: DPC_NO TEL] -- SUMMARY INCOME INEQUALITY MEASURE: ATKINSON & THEIL INDEX 



***                     POLICYTREAT_1==0: [NO TEL]; POLICYTREAT_1==1 [TEL]  /////  POLICYTREAT_2==0: [DPC]; POLICYTREAT_2==1 [UDC]; POLICYTREAT_2==2 [URC]         ***

*
*
*



* TOP 10% INCOME SHARE MEASURE [MC3]  -- BOTH CONTROL COVARIATES AND STATE & YEAR FEs [EXCLUDING STATE PANELS WITH CHANGING FISCAL RULES] *

regress Top10_adj  i.policytreat_1##i.policytreat_2  policy_updated_economic  rpcpi  ur  poverty_r  rdf_pc  C_IT  bbr_strong_rub   i.fips i.year if statepanel_TEL_change!=1,  vce (cluster fips)
*
*
*
estat ic


* COMPUTE LINEAR COMBINATION REGRESSION COEFFICIENTS FOR UNIFIED DEMOCRATIC CONTROL: TEL & UNIFIED REPUBLICAN CONTROL: TEL * 



** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL [TOTAL EFFECT]: UDC | NO TEL + UDC | TEL *

lincom  1.policytreat_2  + 1.policytreat_1#1.policytreat_2 

*


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL [TOTAL EFFECT]: URC | NO TEL + URC | TEL *

lincom  2.policytreat_2  + 1.policytreat_1#2.policytreat_2 

*


********************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** 



*  STANDARDIZED TREATMENT EFFECTS ARE CALCULATED AS THE PERCENTAGE OF EACH RESPECTIVE OUTCOME VARIABLE'S WITHIN STANDARD DEVIATION PER MODE BETWEEN EACH PARTISAN CONTROL GROUP)*100" * 
 
* NOTE: STANDARD DEVIATION FOR W_TOP10_ADJ [BY COMMON SUBSAMPLE FOR POLICYTREAT_2: UDC/DPC/URC] *


** BETWEEN TEL -- NO TEL, WITHIN PARTISAN CONTROL REGIME STANDARDIZED TREATMENT EFFECTS [DECOMPOSING TEL REGIME EFFECTS]  **
*
*

** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *

lincom  ((1.policytreat_2  + 1.policytreat_1#1.policytreat_2  - 1.policytreat_2) / 3.779243)*100


** DIVIDED PARTISAN CONTROL | TEL - DIVIDED PARTISAN CONTROL | NO TEL *

lincom  (1.policytreat_1 /  3.920935)*100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL *

lincom  ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2  - 2.policytreat_2) /  3.311181)*100


*********************************************************************************************************************************************************************


** WITHIN NO TEL / TEL, BETWEEN PARTISAN CONTROL TREATMENT EFFECTS [DECOMPOSING PARTISAN REGIME EFFECTS] **

* NOTE: STANDARD DEVIATION FOR W_TOP10_ADJ [BY COMMON SUBSAMPLE FOR POLICY TREAT_1: NO TEL / TEL] *
*
*

** DIVIDED PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom (1.policytreat_2 / 3.717548) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | NO TEL -  DIVIDED PARTISAN CONTROL | NO TEL *
lincom (2.policytreat_2 /  3.717548) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2 - 1.policytreat_2) /  3.717548) *100

*
*
*

** DIVIDED PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((1.policytreat_1  -  1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 4.034854) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | TEL -  DIVIDED PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2  -  1.policytreat_1) / 4.034854) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2  -  1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 4.034854) *100




*********************************************************************************************************************************************************************


** DECOMPOSING MAXIMUM REGIME DIIFFERENCES: UNIFIED REPUBLICAN PARTISAN CONTROL & TEL MINUS UNIFIED DEMOCRATIC CONTROL & NO TEL  **


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2 -  1.policytreat_2) /  3.767067) *100





************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************
*************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** 



* TOP 1% INCOME SHARE MEASURE [MC4] -- BOTH CONTROL COVARIATES AND STATE & YEAR FEs [EXCLUDING STATE PANELS WITH CHANGING FISCAL RULES] *

regress Top1_adj  i.policytreat_1##i.policytreat_2  policy_updated_economic  rpcpi  ur  poverty_r  rdf_pc  C_IT  bbr_strong_rub   i.fips i.year if statepanel_TEL_change!=1,  vce (cluster fips)
*
*
*
estat ic



* COMPUTE LINEAR COMBINATION REGRESSION COEFFICIENTS FOR UNIFIED DEMOCRATIC CONTROL: TEL & UNIFIED REPUBLICAN CONTROL: TEL * 



** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL [TOTAL EFFECT]: UDC | NO TEL + UDC | TEL *

lincom  1.policytreat_2  + 1.policytreat_1#1.policytreat_2 

*


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL [TOTAL EFFECT]: URC | NO TEL + URC | TEL *

lincom  2.policytreat_2  + 1.policytreat_1#2.policytreat_2 

*


********************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************** 



*  STANDARDIZED TREATMENT EFFECTS ARE CALCULATED AS THE PERCENTAGE OF EACH RESPECTIVE OUTCOME VARIABLE'S WITHIN STANDARD DEVIATION PER MODE BETWEEN EACH PARTISAN CONTROL GROUP)*100" * 
 
* NOTE: STANDARD DEVIATION FOR W_TOP1_ADJ [BY COMMON SUBSAMPLE FOR POLICYTREAT_2: UDC/DPC/URC] *

** BETWEEN TEL -- NO TEL, WITHIN PARTISAN CONTROL REGIME STANDARDIZED TREATMENT EFFECTS [DECOMPOSING TEL REGIME EFFECTS]  **
*
*

** UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *

lincom  ((1.policytreat_2  + 1.policytreat_1#1.policytreat_2   - 1.policytreat_2) / 3.836504)*100


** DIVIDED PARTISAN CONTROL | TEL - DIVIDED PARTISAN CONTROL | NO TEL *

lincom  (1.policytreat_1 /  3.835625)*100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL *

lincom  ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2   - 2.policytreat_2) /   3.49529)*100


*********************************************************************************************************************************************************************


** WITHIN NO TEL / TEL, BETWEEN PARTISAN CONTROL TREATMENT EFFECTS [DECOMPOSING PARTISAN REGIME EFFECTS] **

* NOTE: STANDARD DEVIATION FOR W_TOP1_ADJ [BY COMMON SUBSAMPLE FOR POLICY TREAT_1: NO TEL / TEL] *
*
*

** DIVIDED PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((1.policytreat_2) / 3.769897) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | NO TEL -  DIVIDED PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2) /  3.769897) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | NO TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2 - 1.policytreat_2) /  3.769897) *100

*
*
*

** DIVIDED PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((1.policytreat_1  -  1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 3.937305) *100

** UNIFIED REPUBLICAN PARTISAN CONTROL  | TEL -  DIVIDED PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2   -  1.policytreat_1) / 3.937305) *100


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2   -  1.policytreat_2  - 1.policytreat_1#1.policytreat_2) / 3.937305) *100




*********************************************************************************************************************************************************************


** DECOMPOSING MAXIMUM REGIME DIIFFERENCES: UNIFIED REPUBLICAN PARTISAN CONTROL & TEL MINUS UNIFIED DEMOCRATIC CONTROL & NO TEL  **


** UNIFIED REPUBLICAN PARTISAN CONTROL | TEL - UNIFIED DEMOCRATIC PARTISAN CONTROL | NO TEL *
lincom ((2.policytreat_2  + 1.policytreat_1#2.policytreat_2 -  1.policytreat_2) /  2.630195) *100





*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************
***********************************************************************************************************************************************************************************************************
*********************************************************************************************************************************************************************************************************** 
*********************************************************************************************************************************************************************************************************** 
***********************************************************************************************************************************************************************************************************




*** Save "Income Inequality Database.APPENDIX C ANALYSES.12-10-2024.dta" ***

save  "C:\Users\gk57526\Dropbox\TELs & Income Inequality (Michelle Lofton)\Data\Final Dataset\December 2024\DATA\Income Inequality Database.APPENDIX C ANALYSES.12-10-2024.dta", replace




log close
